The Mechanism Of Psychological Distance On Entrepreneurial Opportunity Recognition

Entrepreneurship makes a lot of sence for social prosperity and development ofnational economy. Entrepreneurship can not only promote the economic growth, strengthenthe national innovation ability, but also speed up the economic structural adjustment, evennarrow the gap between rich and poor, and solve the employment problems. Among theentrepreneurial success trilogy——Opportunity identification, evaluation anddevelopment，opportunity identification is the first problem need to solve. The discussionof influencing factors is a problem that cannot be ignored in this field. On the basis ofconstrual level theory, this study adopted the method of situational experiment, probed intothe influence mechanism of psychological distance on entrepreneurial opportunityidentification. Research was divided into three parts, and setup six kinds of businesssituation with a3x2between-subjects design.The first study investigated the influence of the three dimensions of psychologicaldistance——temporal distance, spatial distance, and social distance on entrepreneurialopportunity identification. A total of164valid data collected from participants with workexperience. With the method of variance analysis, Analysis results showed that In thecontext of more psychologically distant, degree of entrepreneurial opportunityidentification was higher. Study two used the same experimental material to explore themediating role of risk perception. and225valid data were obtained from entrepreneurs orpotential entrepreneurs. Regression analysis results show that the mediating role of riskperception was supported. On the basis of Study two, Study three analyzed the moderatingeffect of entrepreneurial experience on the relationship between psychological distance andopportunity recognition. A2×2ANOVA yielded a significant interaction betweenentrepreneurial experience(have or not) and temporal distance. The same result was foundin social distance.The regression analysis was used to test the moderating effect of yearsof running the business. Results show that distance in the dimensions of temporal and social distance, entrepreneurial experience (including have experience or not and length ofentrepreneurship) moderated the effect of psychological distance on opportunityrecognition, and it worked through risk perception. The moderating effect was notsignificant in the space dimension.